US embassy cable - 05HANOI309

UNCLAS SECTION 01 OF 02 HANOI 000309 
 
SIPDIS 
 
STATE FOR EAP/BCLTV 
STATE PASS TO USAID - CHAPLIN/ANE 
BANGKOK FOR USAID/RDM ASIA - BEANS 
 
E.O. 12958:  N/A 
TAGS: ECON, PREL, EAID, VM 
SUBJECT:  VIETNAM:  AMBASSADOR'S CALL ON THE MINISTER OF 
HOME AFFAIRS 
 
 
1. SUMMARY.  On January 28, the Ambassador paid an 
introductory call on Minister of Home Affairs Do Quang 
Trung.  Minister Trung described the history of his 
organization and its recent elevation from committee to 
ministerial status.  He also explained his role in the GVN's 
efforts on public administrative reform.  Trung expressed 
the GVN's commitment to continued economic reform and 
previewed for the Ambassador the GVN's upcoming report on 
progress since the initiation of reform in 1986.  The 
Ambassador and Minister Trung discussed GVN efforts to 
combat corruption, and Trung highlighted several key areas 
of concern for Prime Minister Phan Van Khai.  Trung 
anticipates that the Law on Associations will go before the 
National Assembly in 2006.  The Minister expressed his 
appreciation for U.S. Government assistance and welcomed 
continued cooperation.  END SUMMARY. 
 
2. The Ambassador paid his introductory call on Minister of 
Home Affairs Do Quang Trung on January 28.  The Ministry of 
Home Affairs (MOHA) is responsible for the administrative 
management of the government.  Its key functions are to 
provide for the organization and procedures for government 
operations, oversee pubic administration reform (PAR), run 
the civil service and approve private associations and NGOs. 
 
 
3. The Minister described the evolution of the Ministry. Ho 
Chi Minh had first created the Ministry of the Interior in 
1945 with Vo Nguyen Giap as the first minister.  Later, this 
organization was reorganized into the Ministry of Public 
Security, which assumed responsibility for security, and 
personnel management became the responsibility of the 
Government Committee on Personnel.  The Committee was 
elevated to ministerial status as MOHA in 2002.  The 
Minister described his overall mandate as organizing the 
governmental structure at the central and local levels, 
managing the civic service in general, providing policy 
advice to the Prime Minister and the National Assembly and 
overseeing and approving the creation of NGOs. 
 
4. Minster Trung serves as the Secretariat and Deputy 
Chairman to the Government Steering Committee on Public 
Administration Reform (PAR) which the Prime Minister chairs. 
In assessing the pace of public administration reform, the 
Minster noted that this has proven to be a challenging area 
for Vietnam.  He was proud that the number of Vietnamese 
ministries had been reduced in recent years, but more work 
remains.  The government's ten year Master Plan (2001-2010) 
governs this process.  While he observed that the next Five 
Year Plan (2006-2010), now being drafted, might modify this, 
Trung gave no specifics.  As the economy moves from a state- 
to market-driven system, Vietnam has had to create 
institutions responsive to those changes, but still 
possessing  "socialist tendencies," he noted.  While much 
has been done, there is still more work, and U.S. Government 
assistance would be welcome, Trung emphasized. 
 
Economic Reform Assessment 
-------------------------- 
 
5. The Minister noted that the government is clearing a 
report on the progress of the economic reform process ("doi 
moi") begun in 1986.  The report concludes that the 
government will maintain its strong commitment to doi moi as 
leadership sees this as the path to make Vietnam a modern 
industrial state by the year 2020.  Comment: Although the 
Minister was aware of the need to create new regulatory 
bodies to allow the reforms to succeed, he did not provide 
any specifics of the government's organizational plans.  End 
Comment. 
 
 
 
Corruption 
---------- 
 
6. In response to the Ambassador's question regarding the 
government's efforts to deal with corruption, Minister Trung 
enumerated many areas that need to be addressed to achieve 
real progress in transparency and accountability.  These 
include the underdeveloped institutional and legal framework 
and lack of experience and training for government 
officials, especially in ethics.  In his view, it was 
essential to have an "accountability regime" and to separate 
state management organizations from running businesses. 
Getting control on corruption would also be part of broader 
State Owned Enterprise (SOE) reform, and would require 
further empowerment of the State Inspectorate and increased 
participation of citizens in scrutiny and oversight. Trung 
noted that earlier that same day, he had attended a meeting 
at which the Prime Minister expressed his resolve to make 
further progress on public administration reform and 
corruption. 
 
Law on Associations 
------------------- 
 
7. The Minister remarked that the law on associations and 
NGOs being drafted by MOHA would be presented to the 
National Assembly in 2006.  He noted, however, that the 
Assembly already has a very heavy calendar and a number of 
would-be private organizations did not understand their 
role.  After being set up, many of these NGOs approach local 
governments for financial support.  Comment: Since any final 
law would touch on the roles of civil society and the state, 
developing this legislation has been slow and remains 
sensitive.  MOHA currently governs private associations via 
a Decree on Association promulgated in December 2003.  In 
one sign of progress, the Ministry recently approved the new 
Anti-Counterfeit Coalition group of foreign businesses, 
including a number of U.S. firms. End Comment. 
 
USG Assistance 
-------------- 
 
8. Expressing his appreciation for past U.S. Government 
assistance, particularly in the area of economic reform, 
Trung noted that one of the challenges he faced was 
developing a well-trained staff.  Many MOHA staff members 
have participated in short-term postgraduate seminars at 
U.S. graduate schools such as the Graduate School of Public 
Administration of the University of Syracuse.  The 
Ambassador responded by offering the Embassy's assistance in 
"enriching" such trips.  He encouraged Minister Trung to 
inform the Embassy in advance of all travel to the United 
States by MOHA staff.  The Ambassador also said that the 
Embassy would be on the lookout for visiting specialists who 
might be useful to the Ministry's work. 
 
MARINE